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Question
Explain the following term/concept.
Surrender of shares
Short Note
Solution
(a) Surrender of shares means the return of shares by the shareholder to the company for cancellation. Holder in this case voluntarily abandons all his shares in favour of the company.
(b) The power to accept the surrender of shares cannot be exercised by a company unless expressly given by the Articles of Association. Only partly paid-up shares can be surrendered. Surrendered shares can be reissued in the same way as forfeited shares.
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Surrender of Shares
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